the economics of money, banking, and financial markets

(Sean Pound) #1
62 #
© 2014 Pearson Canada Inc.#



  1. When we say that money is a stock variable, we mean that ____.
    A) the quantity of money is measured at a given point in time
    B) we must attach a time period to the measure
    C) it is sold in the equity market
    D) money never loses purchasing power
    Answer: A
    Diff: 2 Type: MC Page Ref: 47
    Skill: Recall
    Objective List: 3.1 Describe the meaning of the word money




  2. The difference between money and income is that ____.
    A) money is a flow and income is a stock
    B) money is a stock and income is a flow
    C) there is no difference—money and income are both stocks
    D) there is no difference—money and income are both flows
    Answer: B
    Diff: 2 Type: MC Page Ref: 47
    Skill: Recall
    Objective List: 3.1 Describe the meaning of the word money




  3. Income is a ____ and wealth is a ____.
    A) stock; flow
    B) flow; stock
    C) variable; constant
    D) constant; variable
    Answer: B
    Diff: 1 Type: MC Page Ref: 47
    Skill: Recall
    Objective List: 3.1 Describe the meaning of the word money




  4. Which of the following is a true statement?
    A) Money and income are flow variables.
    B) Money is a flow variable.
    C) Income is a flow variable.
    D) Money and income are stock variables.
    Answer: C
    Diff: 1 Type: MC Page Ref: 47
    Skill: Recall
    Objective List: 3.1 Describe the meaning of the word money



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